The 31-year-old Sakara (15-10, 1 NC) is coming off a controversial loss to Patrick Cote earlier this month at UFC 154. At first, it appeared as though he was going to win the fight after a first-round stoppage, however, referee Dan Miragliotta decided to disqualify him for repeated illegal shots to the back of the head. Sakara's camp later appealed the loss, but the decision was upheld last week.

According to sources close to the UFC, the promotion is working towards booking Cote vs. Sakara 2 at some point in 2013, however, the fight isn't finalized just yet. McMahon wouldn't comment on the possibility of the rematch happening.

"We believe this gesture is indicative of the level of respect the UFC has for Alessio," McMahon said of the contract extension, "and we want to thank Dana White, Joe Silva, Lorenzo and Frank Fertitta for their long-standing support of Alessio. He is very focused on showing his appreciation the next time he steps into the Octagon."

The 10-year veteran, who also holds an 8-1 professional boxing record, made his UFC debut in Oct. 2005. His current UFC record is 6-7 with 1 no contest.